European Lawmakers Demand Answers on Phone Key Theft

European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday.

The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys.

The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.”

“Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal.

Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”

“If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday.

The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said.

Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request.

Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.

According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year.

The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.

Link (The Intercept)

Eric Holder Says Putting Reporter James Risen Through Hell Is A Good ‘Example’ Of DOJ Process For Leak Investigations

Attorney General Holder raised some eyebrows earlier this week when answering a question about his Justice Department’s notorious crackdown on leaks, and by extension the press, most notably saying this about its notorious pursuit of New York Times reporter James Risen, while claiming the DOJ did nothing wrong:

If you look at the last case involving Mr. Risen, the way in which that case was handled after the new policies were put in place [is] an example of how the Justice Department can proceed.

The District Sentinel aptly took apart most of Holder’s comments, and they also provoked a stinging rebuke from Risen himself last night on Twitter. However, I think the facts of Risen’s case deserve a closer look to see just how unbelievable Holder’s statement is.

Let’s recap: since the very start of the Obama administration (read: for SIX years), the Justice Department was trying to subpoena James Risen. It fought for him to testify at a grand jury of CIA officer Jeffrey Sterling, which he refused to do, and when they were rejected by the court, it fought to have him testify in Sterling’s trial. They fought Risen on this all the way up to the Supreme Court.

Also, keep in mind, while the “new” media/leak guidelines that Holder bragged about are certainly a step forward, the old guidelines that applied to Risen’s case should have protected him just the same from the start—if they were actually enforced. He doesn’t get to pretend the preceding five and a half years didn’t happen just because he stregthened the Justice Department’s rules after public protest.

The case cost Risen and his publisher an untold fortune in legal fees, dominated his life, took away from time he could’ve spent reporting, and likely cost the taxpayers millions of dollars.

Along the way, we found out that the government had spied on virtually every aspect of James Risen’s digital life from phone calls, to emails, to credit card statements, bank records and more. (By the way, we still have no idea how they got this information. That’s secret.)

The Justice Department argued in court that not only was there no reporter’s privilege whatsoever — either embedded in the First Amendment or in Fourth Circuit common law — but also that journalists protecting sources was analogous to protecting drug dealers from prosecution.

Link (Techdirt)

FBI Flouts Obama Directive to Limit Gag Orders on National Security Letters

Despite the post-Snowden spotlight on mass surveillance, the intelligence community’s easiest end-run around the Fourth Amendment since 2001 has been something called a National Security Letter.

FBI agents can demand that an Internet service provider, telephone company or financial institution turn over its records on any number of people — without any judicial review whatsoever — simply by writing a letter that says the information is needed for national security purposes. The FBI at one point was cranking out over 50,000 such letters a year; by the latest count, it still issues about 60 a day.

The letters look like this:

Recipients are legally required to comply — but it doesn’t stop there. They also aren’t allowed to mention the order to anyone, least of all the person whose data is being searched. Ever. That’s because National Security Letters almost always come with eternal gag orders. Here’s that part:

That means the NSL process utterly disregards the First Amendment as well.

More than a year ago, President Obama announced that he was ordering the Justice Department to terminate gag orders “within a fixed time unless the government demonstrates a real need for further secrecy.”

And on Feb. 3, when the Office of the Director of National Intelligence announced a handful of baby steps resulting from its “comprehensive effort to examine and enhance [its] privacy and civil liberty protections” one of the most concrete was — finally — to cap the gag orders:

In response to the President’s new direction, the FBI will now presumptively terminate National Security Letter nondisclosure orders at the earlier of three years after the opening of a fully predicated investigation or the investigation’s close.

Continued nondisclosures orders beyond this period are permitted only if a Special Agent in Charge or a Deputy Assistant Director determines that the statutory standards for nondisclosure continue to be satisfied and that the case agent has justified, in writing, why continued nondisclosure is appropriate.

Despite the use of the word “now” in that first sentence, however, the FBI has yet to do any such thing. It has not announced any such change, nor explained how it will implement it, or when.

Link (The Intercept)

Hello Barbie: Hang on, this Wi-Fi doll records your child’s voice?

Toymaker Mattel has unveiled a high-tech Barbie that will listen to your child, record its words, send them over the internet for processing, and talk back to your kid. It will email you, as a parent, highlights of your youngster’s conversations with the toy.

If Samsung’s spying smart TVs creeped you out, this doll may be setting off alarm bells too – so we drilled into what’s going on.

The Hello Barbie doll is developed by San Francisco startup ToyTalk, which says it has more than $31m in funding from Greylock Partners, Charles River Ventures, Khosla Ventures, True Ventures and First Round Capital, and others.

Its Wi-Fi-connected Barbie toy has a microphone, a speaker, a small embedded computer with a battery that lasts about an hour, and Wi-Fi hardware. When you press a button on her belt buckle, Barbie wakes up, asks a question, and turns on its microphone while the switch is held down.

The child’s replies are recorded, encoded, and sent in an encrypted form to ToyTalk’s servers, CEO Oren Jacob explained to The Register. The audio is processed by voice-recognition software, allowing ToyTalk’s systems to figure out what was said and how best to reply.

The doll is loaded up with scripts to read, and one of these is selected depending on what the kid said. If the tyke shows an interest in a particular past-time or thing, the doll’s backend software will know to talk about that – giving the kid the impression that chatty Barbie’s a good, listening friend.

Crucially, the recorded audio of children’s voices (and whatever else happens to be going on around them when they push the buckle button) is kept on ToyTalk’s computers. This material is supposed to help Mattel and ToyTalk improve Barb’s scripted replies. It’s also good test data for developing the voice-recognition code.

Link (The Register)

IRS Encourages Poor Cryptography

I’m not sure what to make of this, or even what it means. The IRS has a standard called IDES: International Data Exchange Service: “The International Data Exchange Service (IDES) is an electronic delivery point where Financial Institutions (FI) and Host Country Tax Authorities (HCTA) can transmit and exchange FATCA data with the United States.” It’s like IRS data submission, but for other governments and foreign banks.

Buried in one of the documents are the rules for encryption:

While performing AES encryption, there are several settings and options depending on the tool used to perform encryption. IRS recommended settings should be used to maintain compatibility:

  • Cipher Mode: ECB (Electronic Code Book).
  • Salt: No salt value
  • Initialization Vector: No Initialization Vector (IV). If an IV is present, set to all zeros to avoid affecting the encryption.
  • Key Size: 256 bits / 32 bytes ­ Key size should be verified and moving the key across operating systems can affect the key size.
  • Encoding: There can be no special encoding. The file will contain only the raw encrypted bytes.
  • Padding: PKCS#7 or PKCS#5.

ECB? Are they serious?

Link (Bruce Schneier)

THE GREAT SIM HEIST HOW SPIES STOLE THE KEYS TO THE ENCRYPTION CASTLE

AMERICAN AND BRITISH spies hacked into the internal computer network of the largest manufacturer of SIM cards in the world, stealing encryption keys used to protect the privacy of cellphone communications across the globe, according to top-secret documents provided to The Intercept by National Security Agency whistleblower Edward Snowden.

The hack was perpetrated by a joint unit consisting of operatives from the NSA and its British counterpart Government Communications Headquarters, or GCHQ. The breach, detailed in a secret 2010 GCHQ document, gave the surveillance agencies the potential to secretly monitor a large portion of the world’s cellular communications, including both voice and data.

The company targeted by the intelligence agencies, Gemalto, is a multinational firm incorporated in the Netherlands that makes the chips used in mobile phones and next-generation credit cards. Among its clients are AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers around the world. The company operates in 85 countries and has more than 40 manufacturing facilities. One of its three global headquarters is in Austin, Texas and it has a large factory in Pennsylvania.

In all, Gemalto produces some 2 billion SIM cards a year. Its motto is “Security to be Free.”

With these stolen encryption keys, intelligence agencies can monitor mobile communications without seeking or receiving approval from telecom companies and foreign governments. Possessing the keys also sidesteps the need to get a warrant or a wiretap, while leaving no trace on the wireless provider’s network that the communications were intercepted. Bulk key theft additionally enables the intelligence agencies to unlock any previously encrypted communications they had already intercepted, but did not yet have the ability to decrypt.

Link (The Intercept)

After Brit spies ‘snoop’ on families’ lawyers, UK govt admits: We flouted human rights laws

The British government has admitted that its practice of spying on confidential communications between lawyers and their clients was a breach of the European Convention on Human Rights (ECHR).

Details of the controversial snooping emerged in November: lawyers suing Blighty over its rendition of two Libyan families to be tortured by the late and unlamented Gaddafi regime claimed Her Majesty’s own lawyers seemed to have access to the defense team’s emails.

The families’ briefs asked for a probe by the secretive Investigatory Powers Tribunal (IPT), a move that led to Wednesday’s admission.

“The concession the government has made today relates to the agencies’ policies and procedures governing the handling of legally privileged communications and whether they are compatible with the ECHR,” a government spokesman said in a statement to the media, via the Press Association.

“In view of recent IPT judgments, we acknowledge that the policies applied since 2010 have not fully met the requirements of the ECHR, specifically Article 8. This includes a requirement that safeguards are made sufficiently public.”

The guidelines revealed by the investigation showed that MI5 – which handles the UK’s domestic security – had free reign to spy on highly private and sensitive lawyer-client conversations between April 2011 and January 2014.

Link (The Register)

Hoping for spy reforms? Jeb Bush, dangerously close to being the next US prez, backs the NSA

Former Florida governor, brother of former President George W Bush, son of former President George H W Bush, and Republican frontrunner for the 2016 US presidential election, Jeb Bush … has strongly defended the NSA’s mass surveillance of innocent people.

Speaking at the Chicago Council on Global Affairs as part of his run for the White House, Bush made it clear that if he did become president he would retain the programs introduced under his brother’s administration.

While covering broad foreign policy topics, Bush appeared to go off script when he said that in order to effectively tackle Islamic terrorism, it was necessary to have “responsible intelligence gathering and analysis – including the NSA metadata program, which contributes to awareness of potential terror cells and interdiction efforts on a global scale.”

He continued: “For the life of me, I don’t understand.. the debate has gotten off track, where we’re not understanding or protecting.. we do protect our civil liberties.. but this is a hugely important program to use these technologies to keep us safe.”

Fast forward to the 28-minute mark for the fun to begin in this vid, streamed live on Wednesday, of his talk

Link (The Register)

Yet Another Report Showing ‘Anonymous’ Data Not At All Anonymous

As companies expand the amount of data hoovered up via their subscribers, a common refrain to try and ease public worry is that consumers shouldn’t worry because this data is “anonymized.” However, time and time again studies have highlighted how it’s not particularly difficult to tie these data sets to consumer identities — usually with only the use of a few additional contextual clues. It doesn’t really matter whether we’re talking about cellular location data, GPS data, taxi data or NSA metadata, the basic fact is these anonymous data sets aren’t really anonymous.

The latest in a long stream of such studies comes from MIT, where researchers explored (the actual study is paywalled) whether they could glean unique identities from “anonymous” user data using a handful of contextual clues. Studying the purportedly anonymous credit card transactions of 1.1 million users at 10,000 retail locations over a period of three months, the researchers found they could identify 90% of the users’ names by using four additional data points like the dates and locations of four purchases. Using three clues, including more specific points like the exact price of a purchase, allowed the identifying of 94% of the consumers. Intentionally trying to make the data points less precise didn’t help protect consumer privacy much

Link (Techdirt)